HPCL Rajasthan Refinery Secures ₹73,000 Crore Plus Equity Infusion Backing from Cabinet Committee on Economic Affairs.

Ahead of its scheduled inauguration by Narendra Modi on April 21, the Cabinet Committee on Economic Affairs (CCEA) recently approved a revised project cost of around ₹73,000 crore for the HPCL Rajasthan Refinery Limited, along with an additional equity infusion of nearly ₹9,000 crore by Hindustan Petroleum Corporation Limited.

The Cabinet Committee also cleared two hydropower projects in the Northeast, while the Union Cabinet gave its approval for the second phase of the Jaipur Metro.

The original cost of the Rajasthan refinery project was estimated at ₹43,129 crore, which has now increased by nearly 69%. The CCEA also approved raising HPCL’s equity investment by ₹8,962 crore, taking the total equity contribution to about ₹19,600 crore.

The refinery project, conceived in 2008 and initially approved in 2013, was earlier slated for completion by December 2022. However, officials said the COVID-19 pandemic disrupted construction activities, while rising material costs further contributed to the escalation in overall project expenditure.